Turkish Lira surges against dollar after Erdogan victory

Turkey’s embattled lira, which had lost some 20 percent in value against the US dollar this year, on Monday surged some 3 percent in value against the greenback following President Recep Tayyip Erdogan’s decisive election victory.

The lira was trading at 4.54 to the dollar, a gain in value of 2.9 percent on the day. It was trading at 5.3 to the euro, a gain in value also of 2.9 percent.

Erdogan won Sunday’s presidential elections in the first round and saw his ruling party-led alliance win an overall majority in parliamentary elections, according to preliminary results.

The outcome relieved investors who had feared a prolonged period of political uncertainty after the polls.

The Turkish economy has in recent weeks been plagued by worries about its underlying health despite high growth, with inflation well into double digits and the current account deficit widening.